So... because I get a 1099-MISC for book royalties for publishing 5 years ago (<$20)...therefore I am in the business of publishing even though I had no activities in the current year that would indicate I operated a trade or business? I could easily come up with a few "expenses" on Sch C that would totally offset this income, but that seems a bit silly (that is what I have done for the past 4 years...eg proof that it is NOT a business). Is there any way to just file this as hobby income? Or am I forced to file a Sch C for eternity if I keep getting a 1099-MISC?
I guess technically I must file a Sch C according to TheTaxAdvisor.com ["royalty income should be classified as business income for individuals who were in the business at the time the intellectual property was created"], but the IRS publications cited really did not address this specific case. With self-publishing this situation will not be so rare in the future.
